New Law Responding to Imitations of Designs that Intersect Real and Virtual Space: Amendment of the Unfair Competition Prevention Act in Japan.

This article examines the June 2023 amendment to Japan's Unfair Competition Prevention Act (UCPA 1993), specifically Section 2(1)(iii), which now includes "the act of offering through a telecommunication line" goods that imitate the form of another person's goods, thereby extending protection to digital items such as Non-Fungible Token (NFT) goods in the metaverse. The amendment addresses challenges in protecting designs of utilitarian products converted into NFT goods, given the limited scope of copyright and design law protections in Japan for such designs, especially across different product types and between tangible and virtual goods. The article discusses the implications of this amendment on the interpretation of "imitation" and "homogeneity" of goods, the standards for substantial identity, and the applicability of the law to various scenarios including virtual-to-real and virtual-to-virtual design conversions. It also highlights unresolved issues related to copyrightability, trademark protection, and the adaptation of traditional legal concepts like "well-known" and "famous" indications to the virtual environment.